Note 37 – Obligations

Accounting principles

Operating leases

Operating leases are defined as all leases that are not finance leases, which means that the lessor in all essential respects holds the financial risks and rewards associated with ownership. The Parent Company only holds leases classified as operating leases. Payments made during the lease term (less deductions for any incentives from the lessor) are recognized as an expense in the income statement on a straight-line basis over the lease term.

Duni AB leases some offices and warehouses as well as passenger cars, primarily for the sales organization. The largest leases are non-terminable in advance. Leases have varying terms, index clauses and rights of extension. The terms are market terms as regards prices and lengths of the agreements.

The nominal value of future minimum lease payments, with respect to non-terminable operating leases, is broken down as follows:

Parent Company
SEK m 2021 2020
MSEK 2021 2020
Payable within one year Förfaller till betalning inom ett år 3 1
Payable later than one but within five years Förfaller till betalning senare än ett men inom fem år 2 17
Payable later than five years Förfaller till betalning senare än fem år 25
Total Summa 30 18
Of which leases signed during the year Därav leasingkontrakt tecknade under året 26 16

The total expenses for operating leases during the year amounted to SEK 6 million (2020: 7) in the parent company. The Parent Company does not hold any finance leases.